Can I get our of my loan obligation during our divorce? 8 Answers as of January 04, 2011

We refinanced a home during the marriage. My husband is keeping the home. Is there a way I can get out of the loan obligation through divorce?

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Warner Center Law Offices of Donald F. Conviser
Warner Center Law Offices of Donald F. Conviser | Donald F. Conviser
If your husband refinances the home after the divorce (or during the process of settlement), he can take the loan in his own name. Without doing so, the current lender won't relieve you of your obligation on the currently existing loan because the lender relied upon your and your husband's credit to extend the existing loan. Even if a debt or obligation is assigned to one party in the divorce judgment, the creditor may be able to collect from the other party if the party ordered to pay the debt fails to do so. If your husband doesn't refinance the house to pay off (and get you off) the existing loan, that loan will show up on your credit report and affect your ability to borrow money. If you have not yet signed a marital settlement agreement or a stipulated judgment in your divorce case, you should negotiate for your husband to refinance the home as a condition for him to receive the home in the settlement, and if he does not or cannot refinance the home, the home should be sold.
Answer Applies to: California
Replied: 1/4/2011
Law Office of Joseph A. Katz
Law Office of Joseph A. Katz | Joseph A. Katz
Of course. If your husband is keeping the house as part of a stipulation in the divorce proceedings, you can Quitclaim Deed the house to him and he can refinance in his name only. That last point is important. The mortgagee does not care whether the two of you are married or not. Your husband has to refinance to get you off of the loan (assuming that you are on the loan), or your credit will still be affected, and you will still be responsible for the debt.
Answer Applies to: California
Replied: 1/4/2011
Diana K. Zilko, Attorney at Law
Diana K. Zilko, Attorney at Law | Diana K. Zilko
If your husband is going to keep the home, then he needs to refinance it so that it is only in his name from this point forward. If he is unable to do so, you can try asking the lender to remove you from the loan. Typically, however, they will not do that.
Answer Applies to: California
Replied: 1/4/2011
Maclean Chung Law Firm
Maclean Chung Law Firm | G. Thomas MacLean Jr.
The easiest way for you to get out of the loan obligation would be for your husband to have to refinance the loan into just his name, since he is keeping the house. Even though a divorce order can obligate him to pay the loan, the bank will still hold you liable unless you are removed from the loan.
Answer Applies to: California
Replied: 1/4/2011
Law Office of Curry & Westgate
Law Office of Curry & Westgate | Patrick Curry
Probably not, the only way out is for your ex to refi.
Answer Applies to: California
Replied: 1/4/2011
    Goldberg Jones
    Goldberg Jones | Zephyr Hill
    Yes. You can attempt to force him to refinance the loan in his own name in order to keep the home.
    Answer Applies to: California
    Replied: 1/4/2011
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    No. You would have to refinance the property. The divorce court cannot remove you from the loan. It has to be refinanced.
    Answer Applies to: California
    Replied: 1/4/2011
    Michael Apicella
    Michael Apicella | Apicella Law and Mediation
    Only if your husband can refinance. The lender is not a party to your divorce. That lender has a contact with you, the debtor. Divorce does not terminate your liability under the loan. As said to get off the loan, your husband needs to refinance. If he can't qualify for a relief or otherwise pay off the loan, such as selling the house, then you will likely be stuck on the loan.
    Answer Applies to: California
    Replied: 1/3/2011
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